Passive Income from Crypto

Lbluehalk on 30/11/2017 - 12:35
Last edited 01/12/2017 - 18:04 by 1 other user

Hi Guys,

I am new to this cryptocurrency business and would like to get your opinions on how to earn passive income from booming crypto market.

Things that I have tried so far.

Mining (I have only one AMD R9 280x GPU in my gaming PC).

  1. Attempted to solo mine few coins (Unsuccessful)
  2. Selling my hashing power to nicehash.com (I was only making $1-$2 worth of BTC a day).

Buy/Sale crypto:

  1. Bought few coins for short term gains. Turns out, I was buying them when they were on highs and was selling low after getting fear of loss.
  2. Bought few more coins (NEO, GAS, OMG, GOLEM, POWR, SC, NEM, MaidSafeCoin) for long term, but from the looks of it. I will end up in loss as they don't seem to be moving much.
  3. Everyone advised me to only put in the amount which I am ready to lose, as such I have invested about $3000 on BTC at $10000 AUD price, and only have invested about $500 worth on above altcoins.

So far, I have made a loss.

Any suggestion or advise on how I can turn this in profit or low passive income.

Financial

Comments

        • [Deactivated] on 01/12/2017 - 23:42
          +1

          still not enough to buy a house shack in sydney.

    • bluehalk on 01/12/2017 - 14:32
      +2

      Will you marry me?

    • Shwayne on 01/12/2017 - 15:50
      +1

      Please secure then well, and back them up. :)

      That's 600k+!

    • cashews on 01/12/2017 - 16:22
      +2

      I'd sell a couple now so that if a worse case scenario occurred, you won't be full of regret for the rest of your life.

      • smpantsonfire on 01/12/2017 - 17:55
        +6

        Yep cash out 100k, then see whatever happens with the rest. you'll still be up by a mile

      • ItsMeAgro on 04/12/2017 - 12:50

        Yep, bitcoin may become the money of the future… or be completely broken by a sudden advancement in quantum computing and become totally worthless.

        If you have life-changing gains in crypto, you need to cash at least a little bit of it out. You really could lose everything tomorrow, otherwise.

  • IMadeYouReadThis on 01/12/2017 - 14:05

    So OP, with your limited experience can you recommend any exchange where I can swap my BTC with other coins for low or no cost?

    • bluehalk on 01/12/2017 - 14:32

      I initially bought BTC and Ripple from BTCMarkets, they charge 0.80% fee.
      After that I also opened the account on Cryptopia exchange and had transferred BTC to trade with other currency. They charge 0.20% fee.

      BTCmarkets take Driver license for verification. none of that rubbish business of you taking photo of your self holding card like some abducted victim being ransomed for more money.

      Cryptopia does not require verification if you are only trading crypto to crypto, but it does require verification if you intend to buy/sell with NZD/USD.

      • IMadeYouReadThis on 01/12/2017 - 14:38
        +1

        Thanks mate.

        BTCmarkets take Driver license for verification. none of that rubbish business of you taking photo of your self holding card like some abducted victim being ransomed for more money.

        I am in a process of opening account with BTCMarkets, yes the other mob who requires you to take a photo of yourself is just absurd!

        • idonotknowwhy on 01/12/2017 - 15:35

          +1 For cryptopia.
          It has a wide range of coins, and no red-tape. Volume is a little low though, so you can end up paying more to bridge the gap between buy/sell orders sometimes.

        • Haters.Inc on 01/12/2017 - 16:19
          +4

          They make you take those photos for Anti Money Laundering (AML) and Know Your Customer (KYC) purposes. It may seem silly and annoying at first, but it's very important as it helps prevent criminals and terrorists from laundering dirty money. The exact kind of things that Commonwealth bank failed to prevent earlier this year (and copped a lot of flak for).

          I'm a big fan of crypto, but these regulations are a good thing.

        • Haters.Inc on 01/12/2017 - 16:21

          @idonotknowwhy:

          Be extra careful with Cryptopia - it doesn't even support real 2FA (such as a Google Authenticator).

          Leaving your coins/fiat on exchanges is risky enough. When it doesn't support MFA and you still use it - that's just asking for trouble.

        • idonotknowwhy on 01/12/2017 - 17:24

          @Haters.Inc: Very true. If has email-based 2fa, which I've disabled. I only keep change in the exchange whle trading.

          Good thing with Cryptopia, is it's very fast to deposit and withdraw.

          Bittrex can take hours to start sending, polonix can lock your account for weeks, bitfinex stole money (got 'hacked'), cryptsy ran off with everyone's coins and btc-e vanished. I had 2fa enabled for btc-e and bitfinex, but they didn't help me.

          I'd be extra careful when dealing with any exchange. Cryptopia seem like the safest one overall.

        • [Deactivated] on 01/12/2017 - 20:00
          +1

          @Haters.Inc:

          Since when? I use Google Auth for Cryptopia.

        • Haters.Inc on 02/12/2017 - 11:09
          +1

          @snagseb: Apologies, you are correct. I just checked and they now offer Google Authenticator.

          A few months ago when I first signed up with Cryptopia, the only option for their "2FA" was simply a secondary pin code (which is not a real secondary factor - both password and pincode is something you know).

          I've updated mine to Google Auth now and feel a lot safer.

      • Shwayne on 01/12/2017 - 15:37

        You can find traders on LocalBitcoins that let you avoid most of the 0.87% fee.

      • Captain M on 01/12/2017 - 16:35

        I would recommend https://bittrex.com. All their trades have a 0.25% commission. Very easy to get setup.

    • Zarcady on 01/12/2017 - 14:33
      +1

      no exchange is going to have all the coins you want, so its best to look at which coin interests you and find an exchange that has a BTC or ETH pair for it. I personally do most of my shopping on Binance and sometimes go dumpster diving in ED to find shitcoins to flip, which is the highest risk/reward if you do some research.

  • IMadeYouReadThis on 01/12/2017 - 14:39

    OP, another Q for you - sorry you came here for advice but ending up giving some :)

    Are you keeping all the coins online on exchange or saving them offline? I am trying to figure out how to move coins from exchange to online/offline wallet, but haven't done a lot of work to figure it out. Any tips?

    • bluehalk on 01/12/2017 - 14:50
      +1

      That was one of my mistakes of moving coins inbetween too many exchanges and wallets.

      I initially wanted to move all of them in my own wallets. For BTC I tried few wallets and ended up losing a lot in high transaction fees.
      For the alt coins, not many wallets are out there and you are forced to have one wallet for each coin.

      I did try Coinomi wallet (Android only), it does have huge number of coins that you can store, but I had to carry two phones and was bit of pain.

      For BTC, if you have large sum. Store it in your own wallet. Small funds, keep them on exchange.

      For altcoins, I do not think you need to store them in their individual wallets (and the pain of keeping track of seed words and private keys of each), better to store them in exchange. Just my personal preference.

      For BTC, I first used JAXX (Multi Currency) as it was on mobile and also on desktop and does allow you to sync wallets between platforms. Then I tried Blockchain as some people advised the JAXX is private wallet and could steal your coins (Not so sure of this). I didn't like Blockchain as it only stores BTC and ETH and also its online wallet. So, I moved to electrum desktop wallet for my BTC and keeping all the altcoins on exchanges, and so far I like that.

      I have moved my wallet file of electrum to offline storage and created a new view/receive only wallet using Master public key. That way it has the same security as any cold wallet like ledger and can still view the balance and receive more btc as I buy more in smaller chunks.

      • IMadeYouReadThis on 01/12/2017 - 15:01
        +1

        thanks a lot mate

        • Moses on 01/12/2017 - 23:11
          +2

          If you buy a coin like NEO you'll want to store it in the NEON wallet as NEO generates GAS (another coin) that you wouldn't get if you leave your coins on an exchange.

        • jsediv on 04/12/2017 - 12:12

          @Moses: Coinspot and Binance both payout GAS monthly

        • Moses on 04/12/2017 - 16:17

          @Divitini:

          I didn't know Coinspot do as well, that's good.

        • jsediv on 04/12/2017 - 17:00

          @Moses: Yeah they only just added it about a month ago. Ended up getting paid out for previous months too which was good

  • Gibbons on 01/12/2017 - 15:10
    -6

    Hey Bud,
    I've been investing in crypto for the last 6 months and found some of the lending platforms (bitconnect, Hextra, regalcoin) being pretty lucrative if you catch them during ICO, bit also provide passive income through daily interest being paid. I'm currently invested in a few and make around 50-100USD a day bit expect that to rise significantly over the next few months. Ofcourse they arnt without their risks but if you want to know more let me know.

    • bluehalk on 01/12/2017 - 15:11

      If you don't mind me asking, how much have you invested to gain 50-100 USD/day?

      I have heard of BitConnect but have not done any research.

      • Gibbons on 01/12/2017 - 15:16
        -2

        Currently have 5500 USD invested across bitconnect and Hextra. IMO Hextra has a brighter future with daily interest rates consistently around 1.5% and has a soft fork coming up on December 25th rewarding Hextra gold which will be airdropped on Jan 1st. This alone is pretty exciting.

        • bluehalk on 01/12/2017 - 15:32

          Thanks, Which one would you advice for newbie like to me to get into?
          BitConnect or Hextra, from what I understand they both are similar and basically you loan the money to them to trade the crypto and they provide the profit from that trade.

        • Gibbons on 01/12/2017 - 15:43
          -2

          I reckon Hextra coin, I believe it's a strong bitconnect competitor, but still only around $30 per Hextra coin. I recommend signing up, hodling Hextra right up until the soft fork (25th Dec) as price will be it's highest, then performing a loan to take advantage of the high price and the 2:1 reward ratio on the Hextra gold airdrop. Have a look into it yourself via their FB page, and don't hesitate if you have any questions.

        • kusama on 01/12/2017 - 15:52
          +1

          @bluehalk:

          Just read a bit more about these before going ahead. They can make a crazy too good to be true 40% per month return but might disappear at any point.

          They are returning money right now because new people keep putting money into them.. (sometimes I think that about crypto in general but crypto is serving some purpose) BUT so many people are hearing about them they might continue for a while - big gamble.

          Also don't get suckered into ICO's - most suck.

          Don't store to much on exchanges - they can change policies, get hacked, etc.

          Get a hardware wallet, or store private keys offline\encrypted USB maybe.

        • gpmd1257 on 01/12/2017 - 17:09
          -2

          @Gibbons: Yeah Gibbons, i agreed with you, I missed out Regalcoin so i thought mind as well try Hextracoin since it was the next one available, i put only a bit of profit from my other crypto investment just for fun and BANG!!! Turned $100 to $4000 in a week (in USD). Yes, crypto is a bubble, but it's not the top yet as it hasn't really hit mainstream, so there's still money to be made. I'm pretty much retired now thanks to crypto, just mining, trading crypto and taking it easy.

        • Tnetennba on 03/12/2017 - 10:10
          +3

          @bluehalk: be extremely careful. bitconnect and hextra coin are ponzi schemes and extremely risky.

          If you want to "safely" invest in crypto, don't buy into these lock-in, over-promising crap schemes which are based on referrals and new investors. Simply purchase some coin (of your choosing, e.g. BTC, ETH, and so on) from a reputable seller, put it in cold storage (e.g. wallet on a USB unplugged) or anywhere that ensures you have the keys to your own investments.

          Seriously, I do not say this lightly. Stay the hell away from bitconnect, hextra, etc. They will crumble, and it won't be pretty. They target greedy individuals who want more and more, only looking at the "guaranteed returns" which is complete rubbish. Yes, some will make money from them, but many will lose out big time.

      • tasty-falafel on 01/12/2017 - 15:39
        +13

        I'm no crypto expert (about 4-5 months in the game) however I would strongly urge you to not invest in BitConnect, everything about this screams ponzi scheme.

        The idea behind the ponzi is that you take money from investors, lock it up for a set period of time (note BitConnects model is based off locking up your funds) and then pay the interest earned from new investors that have entered the market wanting amazing returns. This inevitably is a house of cards that is just waiting to come crashing down as soon as there are not enough new investors to pay back the ones with their investment maturing. Not sure if you've heard of Bernie Madoff but you should look him up.

        As a newbie to crypto I would recommend you don't take any one persons word for it on anything in this space (including mine); take what I have said and do your due diligence - I suspect you will come to the same conclusion.

        Edit: I haven't researched the others mentioned in the comment you were replying too but I would be extremely cautious - if it required your funds locked up for any period of time there is a chance that when that time comes you will be left holding the bag. Don't fall into the hype of X% returns per day/month after a set period of time.

        • Gibbons on 01/12/2017 - 16:05
          +1

          100% Agree. Cryptocurrency in general is extremely risky and volatile, only invest what your willing to loose. Gauge your risk tolerance and invest accordingly.

          In my personal experience i was thinking of investing in Bitcoin back in 2015, but was talked out of it by family members specifically my old man. It has been called a scam/ponzi/bubble etc, but back then it was around $300, and now look at it. Its new and unknown territory, but if you believe in its application and technology then why not have a dig.

        • tasty-falafel on 02/12/2017 - 17:29
          +1

          Totally agree with you, I've heard of too many people who have put their family's life savings or taken out loans to invest in crypto - it's heartbreaking to hear the stories that are going around about people that have lost it all, whether through investing (day trading) or not being security conscious.

          That's a shame you didn't invest back then, I had a chance around 2013 and I decided not to and wrote it off as pretend internet money. Whoops… If I had asked my old man back then he would have said the same thing as yours, funny that these days i'm just starting to get my dad into crypto - in the next week he'll own his first crypto portfolio. How the times change eh…

        • Tnetennba on 03/12/2017 - 10:12
          +4

          @Gibbons: You aren't really agreeing with him… He is stating how bitconnect (hextra, etc.) is a ponzi scheme, yet a few comments above you are promoting ponzi schemes.

          Go figure.

        • Gibbons on 03/12/2017 - 11:24
          +1

          @brezzo: My comments were in response to the OP request for info around passive income through cryptocurrency. I simply shared my own experience, the decision to proceed is up to the individual. Ponzi or not, im in it to make money, and people have made ALOT through these platforms. There are around 80-90 lending platforms now of which only 3 have failed.
          FYI - The Hextra tokens were sold for around $0.80-1 during ICO, now currently valued at $33. If those type of profits dont interest you then thats ok :)

        • Tnetennba on 03/12/2017 - 12:35
          +3

          @Gibbons: they are artificially inflated due to investors being forced to buy them with btc to invest.. They will be worthless when it fails.

        • gpmd1257 on 03/12/2017 - 21:22

          @brezzo: i think you pretty much answers your questions, they will be worthless "WHEN" it fails, but for now, money can be made. Looking at this conversation made me realised that i saw articles saying that everything is a ponzi/bubble, even housing which is heavily inflated, yes we all know that housing is physical bricks and mortar which has value, but doesn't change the fact that it is heavily inflated. Man, this is pretty much like the dotcom bubble all over again lol. Would love to know what the ozb community thinks.

          https://www.cryptocoinsnews.com/prominent-analyst-criticizes…

          https://www.cryptocoinsnews.com/novogratz-may-bubble-bitcoin…

        • Tnetennba on 04/12/2017 - 19:18
          +1

          @gpmd1257: I'm not calling bitcoin a ponzi, just bitconnect and the like. They are blatant ponzis.

          Bitcoin on its own is perfectly fine. Risky, but fine.

        • gpmd1257 on 08/12/2017 - 13:39

          @brezzo: after investing in cryptocurrencies and Bitcoin, i came to realised that everything is a ponzi in a way, shares, properties, etc, just like a game of musical chairs. The last person to sit loses out.

        • Tnetennba on 08/12/2017 - 19:54

          @gpmd1257: Yeah, but if I sell you a house, I don't get a referral bonus, and the more people you sell houses to doesn't get me more money.

          What you are describing is just the risk of investment. Don't confuse it with ponzi schemes run by single organisations (unlike shares, property, etc).

    • IMadeYouReadThis on 01/12/2017 - 15:18
      +7

      I'm currently invested in a few and make around 50-100USD

      but if you want to know more let me know.

      Member since 16 mins ago! Very generous of you for making an account to help the fellow OZB.

      • Gibbons on 01/12/2017 - 15:20
        +1

        Thank You. Been a long time lurker, but been heavily into crypto currency the last 6 months so thought it was a good time to get amongst it :)

        • Captain M on 01/12/2017 - 16:38

          Yea I got onto them the last time there was a crypto thread on ozbargain, about 3 months ago. Lots to learn and read and try out, but the best thing I've done.

      • [Deactivated] on 01/12/2017 - 20:03
        +5

        Of course. He’s gotta hand out his ‘BEEEEEEETTTTTCONNERRRRRCT’ referral code somehow ;). If you invest in Bitconnect, be well and truly prepared to lose it all in an instance. Massive Ponzi scheme. 1.5%….. do the math on that over 5 years and tell me it’s legit.

    • dust on 01/12/2017 - 16:17
      +6

      It was mentioned above but I wanted to reiterate, bitconnect is a ponzi scheme!

    • Haters.Inc on 01/12/2017 - 16:23
      +6

      Bitconnect is actually a ponzi scam. I implore anyone looking into this to do 5 minutes of research on it beforehand.

    • owli on 01/12/2017 - 21:53
      +3

      Obvious ponzi

  • SuperFly 420 on 01/12/2017 - 15:16
    +1

    What is the best iOS app out there to buy and sell cryptocurrencies?

    • SuperFly 420 on 01/12/2017 - 16:57
      +2

      Why the negs? Did I ask something wrong?

      • dylanando on 01/12/2017 - 17:25
        +1

        People are knobs. However bittrex do need an app!

    • [Deactivated] on 01/12/2017 - 20:05
      +2

      If you have Crypto already, Binance iOS app is excellent. If you don’t and are new, you may want to check out Coinspot, pay a little premium for it but it’s straight cash to Crypto and has a nice mobile site.

  • Cluster on 01/12/2017 - 17:24

    It is possible to derive a passive income from certain cryptocurrencies. You can buy CLAMs and invest in gambling sites such as just-dice.com. Usual disclaimers apply: it's unregulated and could be illegal, but the site has been there in various forms for years.

  • 2wheels on 01/12/2017 - 17:43

    Just got into last week through BTCmarkets with a small investment to just mess around and learn. Do you guys know any good unbiased resources like YouTube channels to follow? I've been reading a lot on Reddit but conflicting information everywhere.

    • clint-008 on 01/12/2017 - 20:57
      +8

      I don't own any Cryptocurrencies but have been Interested since around July, the problem is I tend to overanalyze every single aspect of a cryptocurrency then end up investing nothing :P

      Looking back now so many missed opportunities a few guys I watch keep me interested in the Space are;

      Cryptobud
      This guy does fundamental and some technical analysis of ICO's he picked NEO when it was $5 and also invested in a fair bit into Powerledger he does exceptional research even occasionally does interviews with the Devs of certain coins.

      Nugget's News
      Pretty much the Australian version of cryptobud as someone who mostly analyzes and invests in ICOs interviews devs etc.

      Austin Angler
      This guy isn't real big on the Technical side but what I like about him is honesty he isn't afraid to tell you how much he gains or loses on a particular trade or how much he has invested.

      Coin Mastery - Carter Thomas
      This guy sort of comes off as pretentious as he has been very successful, he has a background in Marketing and mostly talks about the factors that he believes are driving the market prices. He also talks alot about risk management and even has resources to help you understand concepts such as dollar cost averaging, rebalancing and diversifying your portfolio to help minimize risk. In addition, he talks about the importance of holding traditional currency to capitalize on dips and hedge your bets.

      Crypto Daily
      Mainly talks about news and the top 100 coins Gains/Losses I mainly watch this guy for his intro skits which a pretty hilarious.

      Node Investor
      Pretty much does only one thing and that charts, he is a trader through and through and try's to analyze and predict a likely run-up or pull back. somewhat useful but at times the Market is so volatile won't really help much anyway.

      All these guys are fairly unbiased and talk about alot of different coins and strategies I try to avoid channels that have a singular focus or talk about ponzi scam coins like bitconnect.

      • 2wheels on 01/12/2017 - 21:50

        @clint-008, thanks so much for the detailed response - will check them all out.

        I'm usually the same by the way, tend to over analyze and research but don't take action but now I've invested using an amount that I can afford to lose and it makes the research more interesting.

      • darkmattersunB6c0MV on 03/12/2017 - 08:55

        Thanks Clint.
        I invest in Cryptocurrencies, and appreciate your help by providing the links.
        Have a nice day.

      • 2wheels on 03/01/2018 - 19:17

        Hey @clint-08- just wanted to drop by and say thanks again for providing the links. I've been listening to Nugget's News and Coin Mastery in particular and they've helped make some great investment decisions. Hope you got into crypto as well as the market (especially alt-coins) has been crazy the last few weeks.

    • ItsMeAgro on 04/12/2017 - 12:57

      good unbiased resources

      Is this even possible?

      How could anyone be interested enough in crypto to be worth listening too, but own zero coins whatsoever, as you'd need to if you want to be even a little bit unbiased/impartial both consciously and subconsciously?

      Let alone as unbiased as you'd need to be, in such a volatile speculative market, since your advice, if any decent number of people follow it, will affect prices?

      • 2wheels on 05/12/2017 - 22:07

        @ItsMeAgro - I meant unbiased as in just level headed, rational and fact based advice, whether they own crypto is irrelevant.

    • kiLbiL on 04/12/2017 - 15:38

      Id verification process does not work with BTCmarkets if you don't have a Australian passport right?

  • noise36 on 01/12/2017 - 19:57
    +2

    If your goal is to earn a passive income why would you be speculating on crypto
    currency?

    No different from trying to earn a passive income from the casino.

    • [Deactivated] on 01/12/2017 - 20:07
      -4

      Because a good crypto coin or token does pay passive income. If you bought a dash masternode 1 year ago it would cost you around 10 grand and allow you to retire and live from it. Oh yeah also would be worth over 1 million dollars if you’d rather just sell it.

      • michael_james_martin on 02/12/2017 - 21:08
        +1

        putting all your chips on 25 in roulette pays out a lot too if the ball happens to land there!

        • [Deactivated] on 02/12/2017 - 21:39

          Does it keep paying you just for holding your ‘coins’? Nope. People who own a Dash masternode get paid thousands every month.

  • NotAMoodle on 01/12/2017 - 22:14
    +4

    John Mcafee revised his original BTC 2020 prediction. He now thinks it will be worth $1 million USD for 1 BITCOIN……….Or he'll eat his own dick.

    https://www.rt.com/news/411379-john-mcafee-bitcoin-predictio…

  • KnoxCK on 01/12/2017 - 23:16

    This HK based exchange pays dividends to holders of it's native token from the transaction fees: https://www.kucoin.com/#/

    Also generates GAS daily if you hold NEO on the exchange. It's been around since June-July and there's a few write ups about it on reddit and medium.

    • idonotknowwhy on 02/12/2017 - 07:44
      +2

      Never hold crypto tokens in exchanges.

  • [Deactivated] on 02/12/2017 - 00:23
    +2

    Recommendations:

    Immediate gains (as in next 30 days)= Bitcoin. When the US futures in Bitcoin open up in the next 2 weeks we should see a decent 20% increase before a correction back to current price.

    For medium term gains I'd look at litecoin. It's what Bitcoin and bitcoin cash really wish they were (as far as a currency is concerned). There's a solid chance that we see some huge gains in litecoin once Atomic swaps (a way of exchanging lite coin to bitcoin and back etc) become an everyday part of cryptocurrencies.

    Long term gains: Ripple. It's not the currency/coin you need to worry about- it's the technology to send payments from bank to bank which is being adopted pretty quickly. Cheap buy at 33 cents at the moment too. Wouldn't be crazy to see 75c-$1 or higher this time next year.

    If you're on a budget and willing to 'punt', I'd focus on Litecoin and ripple.

    But only invest what you're willing to lose because it's a crazy, volatile market- and as you can see from some of the older heads here, it's very, very misunderstood.

    • owli on 02/12/2017 - 10:19

      When the US futures in Bitcoin open up in the next 2 weeks we should see a decent 20% increase before a correction back to current price.

      So you are long now and will sell before the CME futures start trading?

    • UNO on 02/12/2017 - 20:01

      I agree with you. Only buy what you can afford to lose!

      I took a punt on bitcoin in January, put $1k in, now its worth about $9k. My savings are still in the bank. Hindsight is wonderful, but I wasn't prepared to lose it all!

      • mit on 03/12/2017 - 22:31

        wtf with the downvote. this is good advice is repeated all over the net. it's very easy to get sucked into gambling with this stuff.

  • drprox on 02/12/2017 - 07:46

    I don't see how you're down if 3k of your 3.5k was put in btc at 10k..currently worth 14k

  • CharityCase on 02/12/2017 - 12:49
    +1

    Not trying to hijack this post but anyone knows how to report tax on cryptocurrencies? I traded often and made some prifts out of it, it's gonna be a pain in the ass to do tax return next year. I asked my account about this but she's not very familiar with this Bitcoin thing but she suggested me to treat it as share trading. But I'm still not sure how does that work out, I looked up to ATO website, the section on cryptocurrencies is quite confusing and its like been written by different people, some parts are kinda contradictory, which made me hard to understand.

    Say if I bought $1000 Bitcoin from BTCmarket then transfer Bitcoin to Binance and used that Bitcoin to buy some altcoins, one day later I exchanged those altcoins to ETH then sent it back to BTCMARKET and cash it out for $1500. So does that mean I need to report tax on capital gain of $500 minus transaction costs? Or each transaction (BTC to altcoins, altcoins to ETH, ETH to Bitcoin) should be calculated individually?

    • mezje on 02/12/2017 - 21:14
      +1

      I would just report it as a gain of $500. If the ATO site is unclear I doubt they will be digging too deep, at least you report it, more than most I am sure…

    • jackjaz on 03/12/2017 - 13:34

      I've done the same thing but with different figures. If you find an answer could you please pm me? I've also tried finding the answer on the ATO site but it doesn't mention about alts such as buying and selling alts. I also do margin trading, any idea how to tax that?

      Thanks.

  • smashed on 02/12/2017 - 13:40
    -3

    Bitcoin goes up. Uneducated on Facebook sell trading packs to more people. Demand goes up and price goes up. Rinse and repeat.
    Eventually demand stops, price drops and people think "why on earth are these coins worth so much".. Before you know it a load of people will lose a load of cash.

    Nothing has changed in the past 12 months to push these prices up and up aside from idiots wanting to invest.

  • laurence on 02/12/2017 - 15:20
    +3

    look at all you cucks wanting to get in now that btc is at all ath

    • idonotknowwhy on 04/12/2017 - 09:32
      +1

      And now look at all those "cucks" who got in at the 2013 ATH.

  • JimmyF on 02/12/2017 - 16:46
    +1

    So far, I have made a loss.

    Give up and try something else? You have had a good go at it, and well…. lost money at every turn.

  • SaberX on 02/12/2017 - 17:08
    +2

    Lets be honest here. There is no "passive income" here from bitcoin or crypto unless your mining which as some habe said is probably too costly in aus.

    All the money you would make is purely profit. I.e. selling to someone else. Depending on which side of the coin you sit on opinion wise you are selling to the greater fool or you are speculating on its value appreciating. Regardless none are passive income.

    Bonds produce coupon interest.shares dividend. Cash interest. Crypto earns nothing bar what someone pays for iti.e. sell to the bigger fool.

  • synaptec on 02/12/2017 - 18:45

    I'm not an investor or at all clued up on stocks and similar.

    I would avoid crypto assets at present.

    If I had $$ to gamble with on the stock market, I'd bet on Google and Facebook shares crashing in the next 12-36 months.

    Dunno how you make $$ with that prediction. Gets? Puts? Don't know.

  • J6 on 02/12/2017 - 20:04
    +1

    buy bitcoin and leave it. Its going to go up and will continue to do so. I bought some coins a few months back and am now reaping the rewards. Coins are long term, only a small percentage of people see profits that day trade (buy/sell daily).

  • mezje on 02/12/2017 - 21:08

    Posts like these are the fundamental reason why I think bitcoin will fail. The price is inflated from a now very huge hype machine, full of investors who don't care nor understand the technology.

    Unless you really understand the tech day trading or trading alt coins is just a waste of time and effort.

    I know plenty of people who have tried doing this and almost all of them have lost money. You tell these people that if they had of just sat on btc they would be ahead but they always come up with some weird thought process on how keeping your funds on one coin is bad. Alt coins aren't just a ticket to free money, you don't just bye em all, look at graphs all day and attempt to buy and sell on highs and lows… It just doesn't work like that.

    Yes, I "invest" in bitcoin but I also believe in the technology and am fully prepared for if one day it all just disappears, I have not spent more than I am willing to lose.

  • DEvok on 02/12/2017 - 21:16
    -4

    Investment in shares are far better.

  • M Angelo on 02/12/2017 - 23:03
    +4

    "You don't invest in something that you don't understand" Warren Buffet

  • lunartemis on 03/12/2017 - 07:41

    If you bought $100 worth of BitCoin back in 2010, it would be worth $10million if sold today….

  • The tiger on 03/12/2017 - 08:35
    -1

    Hi,Ely and Inq,
    You two 's arguments are interesting . I am an oldie who was a former public accountant . I don't mean I am better than anyone of you two. But seeing two of you debating ideas which are for the benefits of OZ readers , I wish to add my 2 cents contribution here. FYI , I am a share equity investor for the past 20 odd years. Yes putting your hard savings into share equity is definitely an investment( and not a gamble) because I am a SHARE owner in some physical business such as in Woolworths Ltd. or CWBank etc . Yes I do loss some money with some companies who went burst . But as I own a deversified portfolio of shares overall my net worth is always on positive. I encourage my children to put some of their savings into share equity investment, and now my grandkids , and they are doing well . Do you know almost of the Australian Super Funds take part in share equity investments. With such a colossal fund support , the fall of share equity is kept at a minimum , of course it is advisable to keep them for a long term , say at least 8 to 10 years.Why should one use his hard earn savings investing in an unknown coins investments (crypto) which are physical less and no authority in control. ?

    • lnq on 03/12/2017 - 12:02

      in order to gain, you got to take some risks, otherwise we all rich aren't we?
      think about it, are we safer if we did not participate in any risk?
      as Warren Buffet said "You don't invest in something that you don't understand"
      but if you understand something and you dont invest, you fail to practise what you have learnned!
      so keep on learning and keep practice what you learn too!

  • The tiger on 03/12/2017 - 08:36
    -2

    if one goes to casino , and bet $10,000 , one may win in one stroke , but this is a gamble. And 99 % one will loss his hard earned money in gambling, otherwise how our Crown Casno makes their money.

  • darkmattersunB6c0MV on 03/12/2017 - 08:49

    I am trading in Cryptocurrencies, and am making a decent profit.
    Now to wrap my head around all the taxation.
    The rules are as clear as mud.
    I am not running a business, and have used my tax paid money to invest in Cryptocurrencies- including Bitcoin.
    So, what tax do I pay, and what can I do too minimise tax legally (viz Sell only after one yr).
    Some of my friends tell me capital gains tax had to be paid, whole others say if transactions are less than 10 K, nothing.

    If I do not sell, I am hoping I do not pay anything. Then after long term holding, I pay 15% on the lot.

    • pilchard on 03/12/2017 - 12:26
      +1

      Not an accountant, but trading from X to Y is a CGT event.

      For the 10K, the 'others' are probably referring to this:

      Where you use bitcoin to purchase goods or services for personal use or consumption, any capital gain or loss from disposal of the bitcoin will be disregarded (as a personal use asset) provided the cost of the bitcoin is $10,000 or less.

      https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-c…

      Use some of your gains to seek some tax advice from a professional.

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